GBP/JPY Forecast June 9, 2017, Technical Analysis

The British pound had a very volatile session against the Japanese yen during the day on Thursday, which of course is not much of a surprise considering that the UK parliamentary elections were going on. After all, people are very concerned if there could be some type of attitude or stance when it comes to leaving the European Union, and that of course there is a lot of uncertainty into the market. You can see that we ended up rallying towards the end of the date and found the 61.8% Fibonacci retracement level near the 142.75 handle. Having said that, we are starting to see higher lows, so I think we may continue to the upside. I think that the 143 level above there is massively resistive, and a break above there should send this market much higher. In the meantime, I believe that we may see a bit more consolidation.
Consolidation
I believe that we could very well drop down to the 142 handle, where we would find buyers. I do recognize that we can break out to the upside, but ultimately the market will be a “risk on/risk off” type of situation, as per usual. This could be a place to find a lot of losses if you aren’t careful, and while I said be careful trading the USD/JPY pair and perhaps use smaller positions, that’s even more so important in this pair. Ultimately, I do like buying the pear longer-term but I would like to see some stability before I put a large position on. That might mean waiting until Monday, or at the very least the UK election results.